Turquoise Hill today announced that Oyu Tolgoi has declared force majeure in connection to customer contracts for concentrate due to a protest by Chinese coal transporters in the area of the Gants Mod (Ganqimaodu) border crossing. On January 8, 2018, protestors used a large number of vehicles to obstruct the main access road within China to the Chinese-Mongolian border. The main border crossing for goods and supplies is open. The protestors are Chinese companies who are opposed to having to pay the social and health insurance of the Mongolian drivers employed by the companies. A letter containing 12 demands to the Mongolian side was sent by the companies, including exemption from Mongolian laws. In order to resolve the issue of the logjam of trucks that had reached 150 kilometers at its peak, Cabinet approved decree No. 320. Negotiations began on January 12, there have been no signs of any compromises being made. “The placement of protestors’ vehicles prevented any traffic from safely traversing the border, both inbound and outbound, and has continued to do so. As a result, while the obstruction remains in place, Oyu Tolgoi convoys are unable to cross through the Chinese-Mongolian border to deliver concentrates to customers,” Turquoise Hill stated. “Safe and normal mine operations, including underground development, have been maintained and no production impact is expected,” the company added. Trucks that had already crossed into the Chinese border to deliver coal from Tavan Tolgoi or concentrates from Oyu Tolgoi have not been able to come back into Mongolia. The police force working at Gashuunsukhait, the Mongolia side of the border crossing, reported that some of the drivers have come back into Mongolia on foot and are being situated at Tsagaan Khad zone. Deputy Minister of Foreign Affairs B.Battsetseg met with Chinese Ambassador to Mongolia Xing Haiming to discuss ways to resolve the issue. Spokesperson for the Ministry of Foreign Affairs L.Oyuntungalag said, “The Foreign Ministers of China and Mongolia met in December 2017 and agreed to resolve the obstacle at the Gashuunsukhait-Gants Mod border crossing. In relation to this agreement, we have requested the Chinese Ambassador to Mongolia to resolve the inappropriate actions that are being taken by a group of people at the border. In response, the Chinese said it was possible to include all relevant parties to the issue in negotiations to resolve the issue.” Chinese authorities have divulged that the methods used by the protestors is not the way to resolve the issue and has stated that quick action will be taken in regards to the Mongolian drivers that have been stranded.